In what would perhaps be one of those rare moments of ‘Bazinga!’ coming in for Uber, the company has apparently made a decent $9.3Mn in profits through its India operations. This, despite an intense competition from India-based Ola which itself has set itself for a mega global expansion. The numbers have come in via the company’s filings for FY 2019, accessed by Paper.vc. FY 19 interestingly marks a revenue growth of 67% from FY18 for Uber.
Expenses have also shot up by 67%, reaching $115 million this year, from $69 million last year. This can be contributed to the rise in Employee Benefit expenses and finance costs, costing the company a ton of green.
The Indian ride hailing market is expected to be worth $30 billion and is led by the home player Ola in terms of monthly active users. However, Ola is still suffering losses, even though they shrunk down by 8 per cent to around $363 million in FY19 from $398 million in FY18. Revenue for the company has grown by 37 percent from $259 million to $356 million during the same time. And after Uber lost its London license, Ola is looking to start operations in the country coming year.
While Ola’s MAU grew from 27 million in December 2018 to 23.96 million in November 2019, Uber’s, went from 15 million in December last year to 13.3 million in last month. Ola had 67.41 million monthly downloads while for Uber had 45.73 million.
Elsewhere, things do not look too good for Uber in India. The company is planning to sell Uber Eats India to Zomato for $400 million. Uber Eats has been going through rough times globally since the past few quarters, with key executives leaving as well.
Uber as a whole isn’t in the best of shape. The IPO laid bare company’s astounding losses, its founder is off to building something new and didn’t spare much time before dumping shares and key executives have started departing.